Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Falling Property Rates Drive Q1 Global Insurance Price Fall

News release

Falling Property Rates Drive Global Insurance Price Fall in Q1: Marsh

London, Tuesday 6 May, 2014 – Global insurance rates declined in the first quarter of 2014, driven largely by a continued softening in property rates, according to Marsh’s latest Global Insurance Market Quarterly Briefing. The Marsh Risk Management Global Insurance Index declined for the fourth consecutive quarter and is now at its lowest level since the third quarter of 2012. Rates fell slightly overall in the US, reversing an upward trend in previous quarters.

According to Marsh, a mix of strong competition with ample capacity and a scarcity of major events contributed to a drop in property insurance rates across all major regions in the first quarter. The US and UK experienced their largest quarterly decline in more than two and a half years — 2.5% and 5%, respectively. In Asia-Pacific, rate reductions of up to 20% were widespread for commercial business, in some cases nearing 25%, depending on the size of the risk. Latin America recorded the largest average property renewal rate reduction among major global regions, at 7.6%.

While the US and Continental Europe saw a slight increase in casualty rates, the casualty market continued to favour insurance buyers, with rates remaining generally stable overall and decreases being recorded across Latin America, Asia-Pacific, and in the UK.

“The first quarter saw marked evidence of additional capacity flowing into the global market, primarily from existing players looking to increase their market share in particular lines of business or growing territories,” commented David Batchelor, president of Marsh’s International Division. “And continuing competitiveness in the reinsurance market also added fuel to pricing reductions in primary markets.”

Among other findings from the report:

• The professional liability market remained stable overall, with rates on average flat or declining by up to 10% in Australia, France, Germany, India, and Korea, depending on the quality of the risk.

• Italy and Spain were the only countries in the Eurozone to experience a rate increase for financial institutions coverage during the first quarter, with rates on average flat to up 20%.

• Total insurable values continued to increase modestly, as economies recover from the global financial crisis. Buyers that provide property underwriters with complete and accurate data are best positioned for more favourable terms at renewal.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news